Solved by verified expert :ACCOUNTING MID TERMMichael’s Plumbing Company has the following transactions for the yeara. December 1 – Issued capital stock for $50,000 to start plumbing business.b. December 1 – Paid gas expense $500.c. December 1 – Paid one year insurance premium costing $3,600.d. December 2 – Received $3,000 for job to install plumbing system in January next year.e. December 8 – Plumbing repairs for three houses totaling $15,000 and billedcustomers.f. December 10 – Purchased equipment costing $8,400 on credit.g. December 12 – Purchased supplies costing $900 on credit.h. December 23 – Plumbing services completed and billed to customers for $1,500.i. December 24 – Paid for equipment purchased on December 10th.j. December 28 – Received $2,000 for the repairs done on December 8th.k. December 31 – Paid a $1,000 dividend.Required:1. Prepare journal entries for the above transactions. Be sure to identify them as a throughk.2. Post the above transactions to T Accounts.3. Prepare a Trial Balance.4. Prepare adjusting entries in journal format and post to T Accounts.Supplies on Hand December 31 was $500.The Equipment is to be depreciated over 48 months starting with December.(HINT:Record one month depreciation expense).Wages owed but not paid on December 31 was $250.One month of insurance has expired.5. Prepare an Adjusted Trial Balance.6. Prepare an Income Statement, Statement of Retained Earnings and a Balance Sheet.7. Prepare closing entries in journal format and post to the T Accounts.8. Prepare a Post-Closing Trial Balance.C
